LP-4 Seminar Managing Customer Relationships National American University Dr. Gary S. White 1 Define customer relationship management. 2 Customer Relationship Management A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. 3 Accomplishing Customer Relationship Management Organize the company around customer segments Encourage and track customer interaction with the company Foster customer-satisfying behaviors Link all processes of the company from its customers through its suppliers 4 Customer Relationship Management Cycle 5 Key Assumptions in Implementing CRM  Customers take center stage in any organization.  Business must focus on the day-to-day management of the customer relationship across all points of customer contact. 6 Customer-Centric Focus The company customizes its product and service offering based on data generated through interactions between the customer and the company. 7 Establishing Customer Relationships • Creates customized products and services based on data generated through interactions • Builds its system on what satisfies and retains valuable customers • Establishes relationships with customers similar to those of artisans of bygone years 8 CRM and One-to-One Marketing 9 CRM One-to-One Marketing • Company-wide process that focuses on learning, managing customer knowledge, and empowerment.  Individualized marketing method that utilizes customer information to build a long-term, personalized, and profitable relationship with each customer. • Broad and Systemic  Focused and Individualized Learning in a CRM Environment An informal process of collecting customer data through customer comments and feedback on product or service performance. 10 Knowledge Management in a CRM Environment The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization. 11 Knowledge Management Experiential Observations Comments Collected Information Includes: Learned Lessons Conclusions Quantitative Facts about the Customer 12 Empowerment in a CRM Environment Delegation of authority to solve customers’ problems quickly—usually by the first person that the customer notifies regarding the problem. 13 Interaction The point at which a customer and a company representative exchange information and develop learning relationships. The customer, not the organization, defines the terms of the interaction. 14 Customer-Centric Approach for Managing Customer Interactions 15 Chap. 20 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Touch Points in a CRM System All possible areas of a business where customers communicate with that business. 16 Touch Points in a CRM System Customer registration for a particular service Completion of warranty card Communication with customer service External Touch Points 17 Customer discussions with sales, delivery, and installers Touch Points in a CRM System Marketing Research, for developing profiles Production, for analyzing problems Accounting, for establishing cost-control models Internal Touch Points 18 Knowledge Center (call center) Interactions for Customer-Centric Organizations 19 Web-Based Interaction Communications between customers and organizations using Web vehicles. Point-of-Sale Interactions Communications between customers and organizations that occur at the point of sale, normally in a store. TransactionBased Interactions The exchange of information that occurs between the company and the company at the point of the actual transaction. Guest Speakers Today we will hear from two experts. In “what is CRM? Customer Relationship Management (CRM) Explained” we hear from Michael Ferrari. CRM is a business strategy that puts the focus on meeting the needs for your customer. It does this by utilizing advanced technologies to organize, automate, and integrate the marketing, sales, and customer service components of your business. Then, we hear from Martha Rogers: Customer Relationship Management (CRM) Strategy Expert and Keynote Speaker. Recognized for well over a decade as one of the leading authorities on customer-focused relationship management strategies, Dr. Martha Rogers is an acclaimed author, business strategist, and a founding partner of one of the world's premier customer-centered consultancies. https://www.youtube.com/watch?v=7me7mjvTiTI https://www.youtube.com/watch?v=_PgVXs6h3qc Seminar Post-Assignment  Complete the Seminar Assignment that is posted in the Course Announcement Section  Post your assignment in the seminar drop-box no later than the last day of the current LP 21
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